NOT ALL FORWARDING NETWORKS ARE THE SAME
October 27, 2021
Not all networks are the same. If you’re in the wrong forwarding network, you won’t get the same results as being in the right forwarding network, even if you’re proactive and consistent.
The freight forwarding network you pick has a lot to do with the results you get in return for your efforts in working with the forwarding network. There are several different propositions out there, like more members are better or organizing around industry niches. Each approach needs a common-sense analysis as to the value they bring.
Associations, like FIATA or AZ Freight, are not networks. It’s a listing of companies. Freight forwarding networks are groups of companies, interconnected around a proposition that provides the possibility of generating business between members of the forwarding network with the help of programs, tools, and support. Freight forwarding networks are active, while associations are passive.
Many freight forwarder networks emphasize their commitments to quality, without defining what that really means. For example, a forwarder networks that boasts about how big they are may end up generating tons of quote requests from all their members, but may only generate shipments with very little profit. In the end, the cost of non-stop quoting could leave you in the hole. Another example is how newer freight forwarder networks discount memberships or have very low standards of entry as an attempt to build up their forwarder network’s membership.
For a freight forwarder network to work, it must have a minimum level of commitment from all its members. Everyone needs to have some skin in the game, otherwise not everyone is pulling the same weight. If someone pays nothing for their network membership, what level of commitment do you think they bring to the rest of the group? Likewise, if some members pay a deeply discounted introductory rate, does this create a common bond of commitment to everyone working together?
We’ve been in the freight forwarding network space for about 20 years now. We’ve never given a discounted membership, free trials, or free memberships. We might bring in a few more members if we did this, but we firmly believe that all members must have a minimum level of commitment to the group.
We’ve proven over time that good relationships with good companies build great business. This is done far more effectively with a group that's committed to the common goal of proactively building relationships.
There are several other well-established freight forwarding network out there that share this belief. It’s about knowing what works and sticking to your values, while ignoring the easy temptations to take short cuts.
So, before joining a freight forwarding network, you may want to stop and consider their approach. If they are luring you in with low or no costs, then your question is whether this is really a network or a phantom network? Working in a phantom network is like working with two hands tied behind your back. You might get results, but at what cost?
We all know that low cost doesn’t necessarily mean best value. In fact, in the end, it can suck up your time and waste your money.
For 20 years, our networks, GLOBALINK and GLOBAL VALUE have proven to be the right choice for many companies like yours. We are all about partnering with members to support an active sales approach, which builds long term revenue, success, and results.
Interested in learning more? Email willsiemens@glnk.com for more information.
Want to read more interesting posts about freight forwarding? We recently wrote about OUR PLATINUM PLUS FINANCIAL PROTECTION PROGRAM and HOW TO BUILD RELATIONSHIPS IN A FORWARDER NETWORK.
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